What are Sidechains in Blockchain?

At its core, a sidechain is a parallel blockchain that operates independently from the main blockchain (also referred to as the main chain). Typically, this connection is established through a two-way bridge, enabling the seamless transfer of digital assets or tokens between the main chain and the sidechain. You can answer the question “What are Sidechains in Blockchain?” now.

How Do It Work?

Sidechains are unique because they have their own independence. Unlike the main chain, sidechains can choose their own consensus algorithms and block parameters that suit their specific needs. This gives them the freedom to handle transactions more efficiently, resulting in faster confirmation times and lower fees.

Different sidechains can have different consensus algorithms, such as Proof-of-Authority or Delegated Proof-of-Stake. Validators in the sidechain network are important for verifying transactions, creating blocks, and maintaining the security of the chain.

Moreover, sidechains frequently vary from the primary chain in block characteristics. The primary blockchain sets restrictions on block durations and capacities, whereas sidechains can modify these characteristics to enhance transaction capacity. Nevertheless, there are trade-offs involved, as looser block parameters may undermine decentralization by depending on a limited number of influential nodes.

EVM Compatibility

Some sidechains have a special feature that makes them compatible with the Ethereum Virtual Machine (EVM). This means that these sidechains can run smart contracts written in languages like Solidity, which is great for developers. If a sidechain is EVM-compatible, it can smoothly run decentralized applications (DApps) and execute smart contracts made for the Ethereum blockchain.

Advantages and Disadvantages

Sidechains have both benefits and drawbacks, just like any other technological advancement. Now, let’s delve into the advantages and disadvantages of sidechains.


  • Scalability: Sidechains offer a scalable solution by transferring some transaction processing away from the main chain, which reduces congestion and improves performance.
  • Flexibility: Sidechains’ autonomy enables the exploration of various consensus mechanisms and parameters, promoting creativity and customization.
  • EVM compatibility: Developers can effortlessly shift to EVM-compatible sidechains, which allow them to easily deploy their current Ethereum smart contracts on the sidechain.


  • Decentralization trade-offs: Achieving a high throughput on sidechains may require giving up some decentralization. This could result in a few validating nodes having more power, which could affect the security of the chain.
  • Security Concerns: Sidechains are accountable for their own safety. While a breach in the security of a sidechain doesn’t directly impact the main chain, this autonomy might bring about additional security vulnerabilities.
  • Complexity: Implementing and keeping up with sidechains demands a considerable amount of work and resources. The complexity of the initial setup and the continuous maintenance may present difficulties for its adoption.


Sidechains are a promising solution to the scalability challenge in the ever-changing world of blockchain technology. They can operate independently and offer features like EVM compatibility and bridges, which create opportunities for various applications and use cases.

However, it is important for users and developers to carefully consider the trade-offs involved in navigating factors such as decentralization, security, and implementation complexity. As the blockchain industry progresses, sidechains are expected to play a more significant role in creating a scalable and adaptable ecosystem.